Swisscom reports double digit fall in bottom line

13 Mar 2007

Swisscom has reported a 21% fall in 2006 net profit, amid increasing competition in the home market. Profit fell to CHF1.59 billion (USD1.3 billion) while sales were down about 1% to CHF9.59 billion. IT outsourcing projects, as well as a reduction in mobile termination charges were blamed for the negative effect on income. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 9% to CHF3.8 billion.

The annual results come just a day after Swisscom announced a friendly takeover offer for the Italian broadband operator Fastweb in a move to shore up weak revenue at home.

Switzerland, Swisscom